Digital Asset Treasuries Plunge 43% as Crypto Market Collapse Deepens

Digital Asset Treasuries (DAT)—public companies that hold cryptocurrency on their balance sheets—have become one of the worst-performing trades of the year. Following the recent crypto market crash, the sector has fallen sharply into negative territory, exposing the risks of this once-fashionable strategy.

Stock Returns Collapse Across the Sector

Bloomberg data covering 138 DATs listed in the US and Canada shows their share performance is down 43% year-to-date, marking a dramatic reversal for companies that hoped crypto exposure would boost valuations. Larger players like Strategy and Bitmine can absorb the hit, but smaller firms that leaned heavily on niche tokens have taken far greater damage.

Small Companies Suffer the Most

Alt5 Sigma, which raised $1.5 billion in August to purchase a 7.5% stake in WLFI—a token linked to the Trump family—has plunged 86% since June. The company was recently added to Nasdaq’s list of “non-compliant issuers.”

Sharplink Gaming offers an even more extreme example. After shifting into crypto by accumulating ether, its stock soared 2,600%. Now it has fallen more than 80% from its peak, leaving its market value below the worth of its own digital assets.

Why the Crash Matters

Analysts warn that the sector’s collapse—DATs once boasted a combined market cap exceeding $100 billion—could spill over into the broader crypto market. As companies scramble to survive, many may begin selling their crypto reserves, accelerating downward pressure on prices.

Even Strategy, the strongest and most respected firm in the space, has acknowledged it may need to sell bitcoin. CEO Phong Le said in a recent podcast that the company would “sell bitcoin” to fund dividend payments if necessary.

Signs of Hidden Selling

Industry insiders believe the sell-off may already be happening quietly. Rob Hadick, general partner at Dragonfly, said investor interest in DATs has evaporated and that these companies have been exerting steady selling pressure on crypto markets since November.